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06.a2 Draft minutes 09-04-2024 Work Session September 4, 2024 A work session meeting of the Scandia City Council was held on the above date. The meeting was conducted in the Council Chambers at the Scandia Community Center and over an electronic platform. All participants who joined the meeting remotely could hear each other and contribute to discussions. Mayor Christine Maefsky called the meeting to order at 6:30 p.m. The following were present: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, and Mayor Christine Maefsky. Mike Lubke was absent. Staff present: City Administrator Kyle Morell, Public Works Director Charles Fischer and City Treasurer Colleen Firkus. APPROVAL OF THE AGENDA Benson, second by Kronmiller, moved to approve the agenda as amended. Motion carried 4-0. PRESENTATION FROM ASHLEY BULMER – FOREST LAKE SCHOOL DISTRICT SUBSTANCE PREVENTION AND ACTION COALITION (SPEAC) Ms. Bulmer was unable to attend. CANNABIS ORDINANCE UPDATE Administrator Morell presented an updated draft of UDC language and a Cannabis Ordinance for Council to review. The UDC language includes additions to sections 153.600 Master Glossary and 153.300 Allowed Uses. The model ordinance language likely becomes Chapter 115 of the City Code. Work is continuing with City Attorney Christina Benson on the model language. Comments from Planning Commissioner Kirsten Libby were also incorporated. Changes will be incorporated into a new draft to be discussed at the September 17 regular meeting. 2025 DRAFT PRELIMINARY BUDGET Administrator Morell presented an updated 2025 preliminary draft budget with minor changes. The plow truck expected in 2024 won’t be built until January 2025 and payment delayed until 2025. This increased the beginning balance in the 406 Equipment Replacement Fund of the 2025 draft budget, which also reflects $305,000 of the cost paid with ARPA money. ARPA money spent on the Bliss Nitrate project will necessitate borrowing for equipment purchases and increase the levy for debt payments. The Local Road Improvement Fund 408 reflects cash flowing $500,000 in road projects through levy and fund balance for the next several years without adding to debt. The Capital Improvement Committee recommended levying more to avoid more debt understanding that even this amount does not keep up with road maintenance recommendations. Councilmember Kronmiller questioned the need to spend $700,000 on roads next year. Staff explained $500,000 is a cost charing project with Franconia Township to reconstruction 240th Street east of Olinda. The balace is for resurfacing the parking lot which could be delayed. Full reconstruction that was orginally considered could generate the need for Watershed stormwater ponds, like the tennis court project. As are result staff is reviewing mill & overlay or delaying project because of additional watershed costs. The 2026 road project includes a cost share with Chisago Twsp. Staff is waiting for confirmation from the township. A discussion was held about including bonded aggregate material into discussions on future road paving projects of existing gravel roads. Staff was requested to bring the cost of that material to future discusions. Scandia City Council Agenda September 4, 2024 Page 2 of 2 The net levy was reduced by $90,000 by reducing the debt levy through interest earned on the 2024 bond money. A page was added to the draft budget presentation to show historical tax rates that reflect a 9-year average tax rate of 30.134% from 2017 to 2025, with the 2025 draft budget tax rate projected to be 29.549%. Council will vote on the maximum levy at their regular meeting September 17 and a final levy at their December meeting. Discussion items coming out of the Capital Improvement Committee included requesting the Council consider policies to reduce road maintenance costs through a driveway culvert policy, returning ownership and maintenance to residents, and additional development fees such as first time seal coating of new public roads and stormwater fees for future maintenance. Staff will bring back drafts of these policies for the Council to consider. ADJOURNMENT Benson, second by Kronmiller, moved to adjourn the meeting. Motion carried 4-0. The meeting adjourned at 7:10 p.m. Respectfully submitted, Colleen Firkus City Treasurer